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Czech town stops collections on back rent worth CZK 30 million

Most, 28.7.2014 19:34, (ROMEA)
The Chanov housing estate in Most, winter 2012. (Photo:   Lukáš Houdek)
The Chanov housing estate in Most, winter 2012. (Photo: Lukáš Houdek)

Czech Television reports that the town hall of Most has stopped collections proceedings against 120 families living at the Chanov housing estate for debts worth roughly CZK 30 million. The town is also reportedly no longer seeking repayment of back rent and utility bills.

According to the report, town councillors stopped the collections proceedings in two phases. Last year they stopped collections on a total of CZK 12 million in debt owed by 60 people, this year on another CZK 17.3 million owed by 59 people.  

Some of the debts had reportedly been accumulating interest for 13 years. Czech Television reports that only an estimated two out of every 10 people living at the housing estate are employed and most of the families there are in debt.

"These are mostly bad debts. We have tried all options, but when someone has no assets, no job, and his welfare can't be touched, further attempts to get something out of him don't make economic sense," Alena Sedláčková, spokesperson for the town of Most, told news server iDNES.cz.

"We haven't forgiven these debts, we've just 'put them in the drawer'. These people still owe us, so they won't receive a certificate of solvency from us. If we were to find out that they had acquired assets, we'd get their files out and start collecting the debt once more," she said.

As of the end of March the Most town hall reported open receivables of CZK 155.5 million. Most of that represents unpaid fines, local fees, and rent.

The highest debts have long been reported from the Chanov housing estate. The town has been pursuing those debts, including by using the services of collections agents.

In the past the town hall has also embarked upon less traditional methods of debt recovery. People who failed to pay their fines for traffic violations, for example, have had their cars confiscated by the authorities. 

ČTK, ryz, translated by Gwendolyn Albert
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Tags:  

Chanov, Exekuce, Housing, local authority



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